Possibilities for submitting the declaration
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The declaration can be submitted in the e-MTA by either entering data manually or uploading as a file.
The declaration may be uploaded as an XML file, in a single file or separately by annexes. In addition, annexes 1 and 2 and the INF1 form can also be imported from a CSV file after the declaration has been formed.
submit declaration -
The declaration can also be submitted via X-tee.
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The form TSD can be submitted on paper only if there are up to five rows, i.e. five or less recipients to be declared.
Direct access
Instructions for submitting the declaration
3. Non-resident employee’s employment income above 2100 euros per month
Employee with an employment contract, wages or salaries or other similar payment above 2100 euros (payment type 120).
Olle is a Swedish tax resident receiving remuneration for work according to an employment contract in the gross amount of 2500 euros per month. He is not of Estonian retirement age.
In this example, when calculating income tax to be withheld on payment, it is not allowed to apply the basic exemption (regardless of the total annual income of a non-resident and regardless of the country in which the recipient is a resident for tax purposes).
With a payment above 2100 euros, the basic exemption cannot be applied. Although the employee has submitted an application for applying the basic exemption in the amount of 500 euros per month, the employer may apply the basic exemption only to the amount permitted by law.
Mandatory funded pension contributions (II pillar) cannot be withheld from payments made to a non-resident recipient.
Tаx calculation
- Social tax 2500 x 33% = 825 euros
- Withheld unemployment insurance premium 2500 x 1.6% = 40 euros
- Employer´s unemployment insurance premium 2500 x 0.8% = 20 euros
- Withheld income tax (2500–40) x 20% = 492 euros
Net payment of 1968 euros (2500–40–492) is made to Olle´s bank account.
Declaration in Annex 2 of form TSD
|
Payment recipient |
Payment |
A1/E101 country |
|||
|
personal ID code in Estonia |
name or first name and surname |
country |
type |
amount |
|
|
2000 |
2010 |
2020 |
2030 |
2040 |
2060 |
|
98765432100 |
Olle |
SE |
120 |
2500 |
|
|
Amount subject to social tax |
Social tax |
Payment subject to unemployment insurance premium |
Unemployment insurance premium |
Unemployment insurance premium withheld |
|
2070 |
2110 |
2120 |
2130 |
2140 |
|
2500 |
825 |
2500 |
40 |
20 |
|
Amount subject to income tax |
Tax exemption |
Income tax rate |
Amount of income tax withheld |
|
|
type |
amount |
|||
|
2150 |
2154 |
2155 |
2160 |
2170 |
|
2500 |
20 |
492 |
||
Exceptions in tax calculation
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If an employee is of the Estonian retirement age, unemployment insurance premium (code 2130) is not withheld at the rate of 1.6% from payment (20 euros in the example).
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If form A1 “Certificate concerning the social security legislation which applies to the holder” has been issued to an employee from a foreign country (country of the European Economic Area (Member State of the EU, Iceland, Liechtenstein, Norway) or Switzerland; Sweden in the example) the country has to be indicated in code 2060 and Estonian social tax is not calculated in code 2110 (825 euros in the example) nor unemployment insurance premiums in code 2130 (40 euros in the example) nor in code 2140 (20 euros in the example).
If work was done in Estonia, the payment type has to be 121.
Last updated: 06.06.2023
Last updated: 02.01.2024